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Re: Farm payments to City Farmers will not stop!!


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Posted by John in La on February 08, 2015 at 00:11:47 from (96.33.136.54):

In Reply to: Re: Farm payments to City Farmers will not stop!! posted by ditchwitch on February 07, 2015 at 16:42:34:

ditchwitch
Yes it is legal.
Let me try and explain it based on what I have read. This works for many crops but I will stick with rice.

The program is direct payments.
Lets say I own 200 acres of land that I farm rice on. I use to get disaster payments to help we threw bad years. In a effort to wean me off these disaster payments the government came up with the lower direct payments. I get this in good years and bad years.

Now rice has hit rock bottom. No problem. I will just start raising corn; or cattle; or pine trees. But since the land was once used to farm rice I can still get the rice direct payments.
So now I get payments from the government to farm rice and grow a crop that makes me more than rice did.

Now not only is rice hit rock bottom but farming has hit rock bottom. The city is moving closer so I can get a good price for my land so I sell out.
You buy 10 acres of my land once farmed in rice; build a house on 1 acre and call the other 9 acres farm land cause you have a horse.
So now you get the rice direct payment on the 9 acres. On top of that since you get federal payments on the 9 acres it is considered agriculture land and you pay lower property taxes on that 9 acres; and try as they may there is nothing the state can do to raise your property taxes to residential on that 9 acres.


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